Notes to SEFA
The schedule of expenditures of federal awards (SEFA) includes various departments, offices and agencies directly governed by the County of Montgomery, Pennsylvania’s (the County) Board of Commissioners and elected row officers. The SEFA does not include federal funds received and expended by independent authorities and other organizations included in the reporting entity under the criteria of the Governmental Accounting Standards Board Statement Number 14, The Financial Reporting Entity, as amended, as component units. Such component units are responsible, when applicable, for obtaining separate audits of their federal award programs
The accompanying SEFA includes the federal award activity of the County under programs of the federal government for the year ended December 31, 2023. The information in the SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance. Because the SEFA presents only a selected portion of the operations of the County, it is not intended to and does not present the financial position, changes in net position/fund balance, or cash flows of the County.
Expenditures reported on the SEFA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The accompanying schedule of WIOA expenditures by program identifier and year (the Schedule) is presented on the modified accrual basis of accounting. The Commonwealth of Pennsylvania Department of Labor (DOL) requires the break-out in the Schedule by Commonwealth of Pennsylvania fiscal year (July 1 to June 30) to allow for verification by the DOL that all WIOA expenditures have been included in the SEFA. The accompanying Health Department Federal Funding Summary schedule is presented on the modified accrual basis of accounting. The Commonwealth of Pennsylvania Department of Health and Human Services (PAHHS) requested that additional information for each federal program passed through PAHHS be included within the report for the federal program funding to be more readily identified and monitored. This schedule summarizes receipts and expenditures for federal programs passed through the Commonwealth of Pennsylvania Department of Health and PAHHS to the County and includes total federal funding received during the year, revenues and expenditures recognized, and amounts accrued and deferred. The accompanying schedule of Housing and Community Development amounts received is presented on the modified accrual basis of accounting. The Commonwealth of Pennsylvania Department of Community and Economic Development (PADCED) requires this payment listing to allow for confirmation of all funding that has passed through PADCED to the County for calendar year 2023. This schedule reconciles DCED funding as listed on the Commonwealth of Pennsylvania’s SUBS report with departmentally prepared receipt schedules and bank statement information to confirm receipt of said federal funds by the County during 2023.
During 2022, the County awarded a $650,000 grant award to a sub-recipient organization from the Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing Number 21.027). In 2023, the sub-recipient organization determined they would not be able to administer 2022 award in accordance with the grant agreement since it involved an affordable housing project. As a result, the County and sub-recipient organization agreed to terminate the 2022 grant award, which was refunded back to the County. The County subsequently awarded the $650,000 as a loan, which is included in the 2023 SEFA as a federal expenditure. The outstanding balance as of December 31, 2023 was $650,000.
The County has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.